High rating for NZ in global list

By KEVIN TAYLOR

New Zealand is rated fifth in the world in an economic freedom report co-published by the Business Roundtable.

Hong Kong topped the list in the annual Economic Freedom of the World report published by the Cato Institute, Canada's Fraser Institute and groups in 54 other countries.

Singapore was second, the United States third and Britain fourth. Australia was eighth with Canada and the Netherlands.

The project, started with the help of Nobel laureate Milton Friedman, used 37 criteria to produce an economic freedom index of 123 nations from data in 2000.

Among criteria were the degree to which economics were determined by markets and personal choice rather than by government, property rights, freedom to trade with foreigners, sound money, and regulation of credit, labour and business.

So high tax rates and tariffs would reduce a country's ranking, as would price and capital controls.

The Cato Institute said the report showed a strong link between economic freedom and per capita income, economic growth and life expectancy.

"That's because economically free societies are more productive," said the report.